Location: Washington County, IA | Metro: Iowa City, IA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $211,978 | 0.49% | F |
| 3BR | $1,430 | $290,938 | 0.49% | F |
| 4BR | $1,730 | $365,889 | 0.47% | F |
| 5BR | $2,007 | $519,488 | 0.39% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 52247 in Kalona, Iowa, for fiscal year 2024 is set at $1020. This figure represents the maximum amount a landlord can charge for rent under the Section 8 program. It's important to note that this is not necessarily the rent you will receive; it's the ceiling price. The actual rent paid to you will be based on the tenant's income, typically up to 30% of their adjusted income.
To put this into context, the average rent in Kalona, according to the latest Census American Community Survey (ACS), is $845. This means that the FMR for Section 8 is higher than the typical market rate, which could be advantageous if you're looking to cover costs and earn a steady income without competing against lower-priced rentals.
The demand for rental properties in Kalona is relatively high, with 28.3% of residents being renters. This indicates a significant portion of the population relying on rental housing, which translates to a steady pool of potential tenants. However, the competition among landlords for these tenants is also likely to be robust.
If you're considering purchasing a property to become a Section 8 rental, the median home value in Kalona is around $311,537. This figure gives you an idea of the acquisition cost for a typical home in the area. Keep in mind that the property must meet certain criteria, such as being free of health and safety hazards, and may require some initial investment to bring it up to the Housing Quality Standards (HQS).
Before proceeding with your first Section 8 rental, it is crucial to verify that the property meets all the necessary requirements set forth by the local housing authority. This includes ensuring that the rent does not exceed the $1020 limit and that the unit is in compliance with HQS. By doing so, you ensure a smoother application process and avoid any costly delays or rejections.
In summary, the FMR of $1020 provides a stable income source, especially when compared to the local average rent of $845. With a renter share of 28.3%, there is a consistent demand for rental units, making Kalona a viable option for Section 8 investments. However, the median home value of $311,537 suggests that the upfront costs can be substantial. To make a successful Section 8 rental, confirming that your property meets all local housing authority requirements is essential.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.